OAKLAND, CA--(Marketwired - December 27, 2016) - Arcview Market Research, the leading publisher of cannabis market research, in partnership with New Frontier Data, the cannabis Big Data and analytics authority has released its Washington Legal Cannabis Market State Profile, which explores the recent significant changes to the state's cannabis industry. The elimination of the medical system that was operating in parallel to the adult use market will lead to a significant contraction of the state's medical market, making the adult use market the primary driver of the official Arcview Market Research projection of $2.4 billion in cannabis sales projected by 2020.
"The Washington market is maturing, but it has a long way to go to reach saturation. It will practically double by 2020. People really like cannabis and the regulated market is beating the underground market, as predicted," said Troy Dayton, CEO of The Arcview Group.
"Over the past 18 months, Washington has undergone some of the most dramatic changes to any regulated cannabis program in the country, from lowering the tax rates to consolidating the medical and adult use markets into a single channel. These changes are intended to streamline the market and eliminate structural inefficiencies. However, it will be at least another year before we understand their full impact on product supply and consumer behavior," said New Frontier Data Founder & CEO, Giadha Aguirre DeCarcer.
Washington's combined medical and adult use sales are projected to grow from $1.2 billion in 2016 to $2.04 billion in 2020, a compound annual growth rate of 23%. After more than two years in operation, sales in Washington's adult use market have continued to exceed expectations. In 2014, average monthly sales were $10.8 million. By 2015 average monthly sales increased five-fold to $51.2 million. This then doubled in 2016 to more than $111.6 million, with strong demand expected to continue in 2017.
The state has folded medical sales into existing retail cannabis stores, eliminating all stand-alone medical dispensaries. Additionally, the state increased the number of retail licenses that will be made available from 334 to 556, and under the new harmonized medical program, patients will be required to pay the 37% excise tax on cannabis, thereby eliminating a key benefit of being a medical cannabis patient relative to being an adult use consumer.
Some other critical issues related to Washington's market explored in the report include:
- Adult Use Sales Continuing to Outperform Expectations
- Washington exemplifies the value of making cannabis industry data publicly available
- The growth of concentrates as the dominant non-flower product segment
- The state's goal to expand the random testing program for pesticides
If you would like more information on Washington's legal cannabis markets, you can download the 2016 Washington Legal Cannabis Market State Profile at www.ArcviewMarketResearch.com and the report can be ordered for $249.
About The Arcview Group:
Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600+ dues-paying accredited investors who have put more than $91 million behind 135 companies. The next big members-only Arcview Investor Forum is scheduled for January 16-18 in Los Angeles, CA. Arcview Market Research produces the State of Legal Marijuana Markets report, which is the most oft-cited market report. Arcview is a partner in Canopy, a seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. For more info on The Arcview Group please visit www.arcviewgroup.com or contact Abby Benjamin at 720-518-7611 or firstname.lastname@example.org.
About New Frontier:
New Frontier provides objective, rigorous and comprehensive analysis and reporting for the nascent and underserved cannabis industry. New Frontier's data and reports have been cited in over 45 countries around the world to inform industry leaders. New Frontier, the premiere Big Data shop in the sector looks beyond the plant cultivation and distribution, to raise the industry bar and improve visibility into what will inevitably soon be a mature and more complex industry. Founded in 2014, New Frontier is headquartered in Washington, D.C. For more information or media inquiries, please visit www.frontierfinancials.com or contact Gretchen Gailey at 202-489-3821 or email@example.com.